It's being reported on both the BA and LH boards that Lufthansa and Iberia have reached verbal agreement on a takeover deal. Haven't seen anything yet about BA's response to this.

If the deal goes through, it will be a significant coup for LH and *A, who at a stroke will have another sizeable chunk of Europe sewn up and will have a replacement for Varig in the Europe - South America market.

Looks like the shape of oneworld may be about to change again.